Opportunities in the Chinese market: Strategy, Tactics and Practical Tips Sunday, January 24, 2010

1. TEL AVIV
UNIVERSITY
“Globalization 101”: Faculty of
Management
China @ Crossroad, 2009 Max Perlman
Center for
Global Business
International
Business Strategy viz. China:
The Unique Qualifiers
Zhang HongTu
Gadi Ariav Image sourced from Saatchi Gallery website.
MIT Forum, January 2010
Copyright Max Perlman Center for Global Business 2010 © 1/8

2. TEL AVIV
UNIVERSITY
Faculty of
Management
Max Perlman
synopsis Center for
Global Business
one world – ready or not
thinking strategically – global arbitrage?
homework: configure the IB architecture
the CN-modifiers:
national differences, different stake-holders
doing business in/with CN:
challenging
no excuse for ignorance-based failure
unavoidable?
Copyright Max Perlman Center for Global Business 2010 © 2/8

3. TEL AVIV
the design of global UNIVERSITY
Faculty of
competitive corporate Management
Max Perlman
Center for
business architecture Global Business
key strategic global choices:
home country
supplier / production countries
customer countries
partner countries
competitor strategic global choices
the global arbitrage case:
global added value from trade
key global operational choices (“G5”):
platform, network, intermediary,
entrepreneurship, investment
Copyright Max Perlman Center for Global Business 2010 © 3/8

4. TEL AVIV
UNIVERSITY
Faculty of
global business strategy: Management
Max Perlman
implementation agenda Center for
Global Business
managing the value network:
manufacturing and supply networks
locating components globally
marketing
payments and collections
control:
risk and asset protection
governance
Copyright Max Perlman Center for Global Business 2010 © 4/8

5. TEL AVIV
UNIVERSITY
Faculty of
IB strategy: Management
Max Perlman
global strategic modifiers Center for
Global Business
national differences:
history, economic history
political economic system
legal system
culture
country linkages
stakeholders: esp. government and public
ethics and social responsibility
Copyright Max Perlman Center for Global Business 2010 © 5/8

6. TEL AVIV
UNIVERSITY
Faculty of
Management
Max Perlman
Center for
Global Business
Copyright Max Perlman Center for Global Business 2010 © 6/8

7. TEL AVIV
UNIVERSITY
Faculty of
Management
Max Perlman
CN ultimate combination Center for
Global Business
infinite pool of low wage, not-trained labor
fast increase in productivity w/o impact on
wages
emerging and huge consumption markets
potential access to global best practices
diversified economic development among
provinces
acceptable secondary and tech education
acceptable political stability
very high political independence
Copyright Max Perlman Center for Global Business 2010 © 7/8

8. TEL AVIV
UNIVERSITY
Faculty of
Management
Max Perlman
China strategic modifiers Center for
Global Business
national differences:
history, economic history: long, transitional
political economic system: market socialism
stakeholders: esp. government and public
legal system: practice precedes law
culture: deep, somewhat transitional
ethics and social responsibility
country linkages: China-fication of WTO
Copyright Max Perlman Center for Global Business 2010 © 8/8